Why EMC Is Poised to Bounce Back
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, data-storage specialist EMC has earned a coveted five-star ranking.
With that in mind, let's take a closer look at EMC and see what CAPS investors are saying about the stock right now.
Hopkinton, Mass. (1979)
Computer storage and peripherals
Chairman/CEO Joseph Tucci
COO/CFO David Goulden
Return on Equity (average, past 3 years)
$6.2 billion / $1.7 billion
Hitachi Data Systems
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 96%of the 3,837 members who have rated EMC believe the stock will outperform the S&P 500 going forward.
Since 2007, FCF per share has nearly doubled from $1.24 to $2.46; that's a five year [compound annual growth rate] of 19%. Borrowing Chuck Akre's observation that one's return on an investment should in theory approximate the rate at which it compounds owner earnings, EMC looks like a solid investment selling at an attractive price. Throw in the company's competitive position in cloud computing and big data and you get a solid long term pick.
If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, EMC may not be your top choice.
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The article Why EMC Is Poised to Bounce Back originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool owns shares of EMC and International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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